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Economic Planning as an Integrative Mechanism in India: Changes and Challenges After Economic Liberalization
Authors:Baldev Raj Nayar
Institution:McGill University
Abstract:Besides its principal purpose to plan for economic development, India's Planning Commission has also served as an influential integrative mechanism for the economy and nation, both spatially and socially. Despite economic liberalization, the state found the commission to be an eminently useful public policy instrument and has continued to retain it. The commission has proven to be a flexible and adaptable organization, receptive to new ideas. Since liberalization, its approach to planning has changed (a) from comprehensive planning to indicative planning; (b) from planning for state hegemony to adapting to private sector expansion; (c) from planning for a producer state to planning for a quasi-welfare state; and (d) from centralization to coordination in planning. Challenges abound, however. The commission's key role in economic integration both over the short and long run, particularly as a link between the center and states, nonetheless makes it worthy of strengthening, not weakening.
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